Fred VanVleet’s new two-year, $50 million deal with the Houston Rockets is a major win for the team, not just on the court but also financially.
Fred VanVleet is set to stay in the Houston Rockets, and his new contract isn’t just good news for the Rockets’ backcourt—it’s a strategic win for the team’s salary cap situation.
According to ESPN’s Shams Charania, VanVleet plans to sign a two-year, $50 million deal with the Rockets, including a player option for the 2026-27 season. Houston is declining his previous $44.9 million team option in favor of this new contract.
What makes this deal especially important is the salary flexibility it creates. VanVleet is taking roughly $20 million less this season than his original option, which frees up significant cap space for the Rockets.
Because of this salary reduction, Houston now has access to the full Non-Taxpayer Mid-Level Exception (NTMLE) of $14.1 million.
That extra $14.1 million in spending power is huge in a summer where cap space is limited around the league.
It gives the Rockets the ability to pursue additional free agents or make other roster moves without being hampered by salary restrictions.
This kind of flexibility is invaluable, especially after the team’s major move acquiring Kevin Durant from the Phoenix Suns.
On the court, VanVleet brings veteran leadership and solid production. In the 2024-25 season, his second with Houston, the 31-year-old guard averaged 14.1 points, 5.6 assists, 3.7 rebounds, and 1.6 steals per game.
